Saysha Is an Officer of a Local Bank That Merges

question 7

Multiple Choice

Saysha is an officer of a local bank that merges with a national bank,resulting in a change of ownership.She loses her job as a result of the merger,but she receives a cash settlement of $390,000 from her employer under her golden parachute.Her average annual compensation for the past five tax years is $110,000.What amount,if any,is deductible by the bank?

• A) $0.
• B) $50,000.
• C) $110,000.
• D) $390,000.
• E) Some other amount.

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Definitions:

Halifax

A city in the Canadian province of Nova Scotia, often not directly related to financial terms unless specifying a financial institution or geographic economic analysis.

Currency

Currency refers to money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins.

Political Risk

Risk related to changes in value that arise because of political actions.

Foreign Subsidiary

A foreign subsidiary is a company that is owned or controlled by another company but operates in a different country from the parent company.